INTRODUCTION TO PHARMACY ADMINISTRATION MANAGEMENT

PRPM120-LB412021-SAABUSHENDI
AND LEADERSHIP-SAABUSHENDI

MODULE 2 PLANNING 2. Parity of Authority & Responsibility - Managers

must be able to give orders. Authority gives
Planning
them this right. Responsibility arises wherever
● FORETHOUGHT authority is exercised.
● It is the process of thinking about and 3. Span of Control
organizing the activities required to achieve a ● The specific and limited number of
desired goal. subordinates that a manager can
● It represents the purposeful efforts taken by an effectively handle and control.
organization to maximize its future success. ● The principle of span of control states
● It involves more than just managers at high that there are only so many employees a
levels, but it also involves front line employees. manager can effectively supervise.
● Time and resources are invested in this stage 4. Unity of Command - Every employee should
for better outcome. receive orders from only one superior.
5. Unity of Direction - There should be one boss
Steps in Planning Process and one plan for a group of activities having the
1. Define or orient the planning process to a same objective.
singular purpose or a desired result. 6. Scalar Chain
2. Assess the current situation. ● In any organizational structure, ultimate
3. Establish goals. authority rests at the top and flows
4. Identify strategies to reach those goals. downward.
5. Establish objectives that support progress ● Scopes of the limits to authority and
toward those goals. responsibility must be well delineated
6. Define responsibilities and timelines for each on paper as well as in the minds and
objective. actions of employers and employees.
7. Write and communicate the plan. ● This is especially true in hospitals where
8. Monitor progress toward meeting goals and there potentially can be many “bosses”
objectives. – hospital administrators, physicians
serving as chiefs of staffs, etc.
Henry Fayol 7. Subordination of Individual interest to General
interest - The interest of one employee or group
● French Industrialist
of employees should not prevail over the
● The first to issue a complete statement on a
interest of the business.
theory of general management
8. Centralization - It is the extent to which authority
● His greatest contribution was the discussion of
is concentrated. It is a system of management
management principles and elements.
wherein major policies are made only by the top
● He provided the “14 Principles of Management”
management.
14 Principles of Management 9. Stability of Tenure
● Employees should be given enough
1. Division of Work - Assignment of specialized time and period to prove his worth to
jobs to various departments and/or positions. the company.
Work specialization is the best way to use the ● This can be applied through
human resources of the organization. probationary appointment.

KISHA 1
 INTRODUCTION TO PHARMACY ADMINISTRATION MANAGEMENT
PRPM120-LB412021-SAABUSHENDI
AND LEADERSHIP-SAABUSHENDI

10. Esprit de Corps - This principle explains that “in accomplishmen

union there is strength”. It emphasizes the need t of tasks.
for teamwork and the importance of Business To determine the Short term (1–5
communication in obtaining it. Planning feasibility of a years); can be
11. Simplicity - Unnecessary elements should be specific business used to make
eliminated from all activities as well as from the or program. decisions to
process and procedures established for carrying Business planning start a new
is used to make a business,
them.
decision about expand a
12. Order - Ensure that there is a place for
investing in and business, or
everything.
moving forward terminate a
13. Equity - It results from kindness and justice. with a program. business.
14. Remuneration - The method of payment should Resource To ensure the Midterm (1–10
be fair and should afford the maximum possible Planning resources years); scope is
satisfaction to employees and employer. This necessary to specific to the
principle is based on “equal pay for equal work”. achieve the goals resource or
and strategy of resources
Types of Planning in Pharmacy Organizations the organization. defined in the
Resource plan; viewpoint
Types of Purpose Characteristics
planning can be is internal—the
Planning
comp rehensive resource needs
Strategic To ensure that the Long term (5–20
(all resources of the
Planning organization is years); scope
needed to achieve organization.
doing the right includes all
goals and
things. Addresses aspect s of the
strategic plan of
what business the organization;
the organization)
organization is in, viewpoint is
or can focus on a
or ought to be in, external— how
specific type of
provides a the organization
resource.
framework for interacts with or
Organizational To ensure that an Midterm (1–10
more detailed controls its
Planning organization is years); scope
planning and environment.
organized specific to the
day-to- day
appropriately to structural
decisions.
meet the aspects of the
Operational To ensure that the Short term (1–5
challenges of the organization
Planning organization is years); scope is
future. Key viewpoint is
prepared perform specific to the
elements include internal— how
the immediate immediate
reporting the company
tasks and actions that
relationships, organizes itself.
objectives to meet need to be
definition of
the goals and taken to move
responsibilities,
strategy of the the organization
and definition of
organization. To forward;
authorities.
ensure that the viewpoint is
Contingency To provide a fall Short to long
organization is internal -day
Planning back option or term (1–20
doing things right. -to-day
direction should years); scope is

KISHA 2
 INTRODUCTION TO PHARMACY ADMINISTRATION MANAGEMENT
PRPM120-LB412021-SAABUSHENDI
AND LEADERSHIP-SAABUSHENDI

the original specific to the ● The vision statement should make people think
strategy of the particular and should motivate people to strive for
organization fail or situation that something greater.
should something may occur; ● A company vision statement should inspire
unexpected viewpoint is employees to create a different future for the
occur. It can both external (if organization.
occur for a the situation is
● The vision of the organization is used in the
specific created in the
strategic planning process as both the
anticipated environment)
beginning point and the end point.
situation, the and internal.
most common of ● That is, once the vision is set, then strategic
which are planning is about how to reach that end point.
business related ● The vision is also used to define the mission of
crises (such as a the organization
labor strike),
natural disasters, Mission
and changes in ● The mission is the purpose of the company.
management
● The mission statement defines what the
personnel.
company does or is.
● It is a statement of the present going ahead into
Strategic Planning the near future.
● It is a document written to create a sense of
● The process of selecting an organization ‘s purpose for customers and employees.
goals, determining the policies and programs ● The mission statement should be short—usually
(strategies) necessary to achieve specific no more than two sentences.
objectives until goals are met. ● It focuses on the common purpose of the
● It is also about establishing methods necessary organization and may draw from the values or
to ensure that the policies and strategic beliefs held by the organization.
programs are implemented (Steiner, Miner, and ● The mission statement should help to
Gray, 1982). differentiate the company from others that
● Strategic planning has a lot to do with defining provide the same products or services.
what a company is all about and creating a ―” ● Some organizations include in the mission
story” about the organization. statement not only what the company does but
● Most essential of these statements are the also how it does it - essentially the
vision statement and the mission statement. differentiating point.
Vision and Mission All pharmacy organizations should have a mission
Vision statement. The following elements have been suggested
in developing a mission statement for a pharmacy: the
● The vision is what the pharmacy organization intended (or target) customers, the core values of the
wants to be at some future time point. pharmacy (such as compassion, respect, and
● The vision statement should be short. confidentiality), the key services and products provided
by the pharmacy, the benefits incurred by customers

KISHA 3
 INTRODUCTION TO PHARMACY ADMINISTRATION MANAGEMENT
PRPM120-LB412021-SAABUSHENDI
AND LEADERSHIP-SAABUSHENDI

(such as improved health and improved safety), and the based on a system of pharmacy
desired public image of the pharmacy (Hagel, 2002). service units.

In addition to the mission statement, some businesses Objective ● To develop a

use a company slogan to convey a message to workload-monitoring system that
customers about the organization. The company slogan identifies distributive and clinical
generally is more marketing-driven than is the mission workload by satellite area.
statement, but in some cases the company slogan ● To use the workload statistics to
serves a similar role. Like the mission statement, the predict staffing needs.
company slogan sends a message to both customers ● To evaluate overuse and
and employees, and it must be congruent with the underuse of staff based on the
actions of the organization or else it will not be credible. need for the activities performed

The vision, mission, and other statements that form the Task/ ● Determine what distributive and
company story are critical elements in strategic Action clinical indicators will be used.
planning. If these elements already exist in the Plan ● Develop a method for collecting
organization, then the process of strategic planning the workload statistics.
starts with these as its foundation or modifies them as ● Collect hours worked by staff
necessary. If these elements do not already exist, then category and satellite area.
the process of strategic planning must include their ● Develop a monthly productivity
conception. report by area.
● Analyze staffing patterns in
Objectives and Goals
comparison with workload
OBJECTIVES are established at organizational, statistics.
departmental, or individual level. It has something to do
with the direction in which an individual or organization
wants to move. Operational Planning
GOAL prescribes a definite scope and suggests ● It is the process of mapping out the actions
direction to maximize the efforts of a manager. necessary to accomplish short-term objectives.
● It focuses on determining the day-to-day
Strategy It is the method of shaping a company’s future
activities that are necessary to achieve the
and involves determining the long-run direction of the
organization. A strategy outlines the basic steps and long-term goals of the organization.
● Strategic planning defines what to do, and
management intends to do to achieve its objectives.
operational planning defines how to do it. The
Example of a Strategic Plan; operational plan is an outline of the tactical
activities or tasks that must occur to support
Strategy ● The department will achieve an
and implement the strategic plan—sometimes
organized approach to cost
called tactics.
containment and cost reduction.

Goal ● Develop an on-going

workload-monitoring system

KISHA 4